C. Variable costs will change in averse relation to sales revenue D. Total costs will not increase as sales revenue increases 22. On the break-even graph, what is the break-even point? The point at which: A. the sales revenue and total cost lines intersect SECTION B B. sales revenue and fixed costs intersect C. sales revenue and variable cost lines intersect Instructions: Answer any THREE (3) questions from this section. D. total cost and fixed cost intersect 23. Which of the following is an example of a fixed cost? Question 1 A. Wages a. Define the following terms: B. Transportation C. Utilities i. Fixed costs ii. Variable cost D. Insurance ifi. Contribution margin (6 marks) 24. Jen Care Hotel Lid. has net sales of $4,400,000 and the cost of goods sold as $3,300,000 b. A restaurant owner has provided the following information with respect to its current for the financial year end March 2009. The average inventory was $1,320,000. What is business operations: the inventory turnover ratio for the year? Fixed costs: A. 2 times Manager's salary 510 000 B. 10 times Rent 150 000 C. 3.3 times D. 2.5 times Advertising 90 0DO Depreciation of Machinery 120 000 25. When calculating quick ratio, which current asset is excluded? The selling price is $280 each Variable A. Receivables costs: B. Inventory C. Cash at bank Food costs 35% of sales revenue D. Marketable securities Wages 25% of sales revenue Fuel costs 15% of sales revenue i. Calculate the breakeven sales revenue (5 marks) (Total 25 marks) ii Calculate the breakeven in units (3 marks) END OF SECTION A iii What level of sales will the firm have to achieve in order to earn a profit of $4 00 000? (3 marks)AOCT401 AOCT4501 SECTIONA Instructions: On the computerized answer sheet provided, shade the letter that corresponds 6. The ability of a company to pay its short-term obligations as they fall due from with the most appropriate response for each of the following. noncurrent assets. Which of the following does this statement describe? A. liquidity 1. Which of the following is the MAIN user of Hospitality Management Accounting? B. efficiency C. profitability A. Banks D. measurability B. Managers C. Customers Questions 7 and & refer to the following data below: D. Investors A department has two operating divisions: Food service with sales revenue of $95 000 and bar 2. Another name for comparative analysis is analysis. lounge with sales revenue of $55 095. A. vertical 7. Calculate bar lounge sales as a percentage of the total sales revenue B. straight C. horizontal A. 23% D. trend B. 37% C. 63% 3. Which of the following BEST describes comparative analysis? It shows D. 100% A. expenses expressed as a percentage of revenue B. Calculate food service sales as a percentage of the total sales revenue B. revenues expressed as a percentage of expenses C. changes in dollar amounts between two or more periods A. 23% D. declines in revenues in order to establish trend percentages B. 37% C. 63% 4. Which of the following statements is CORRECT? D. 100% A. Departmental cost - contributory income = departmental revenue Questions 9 and 10 refer to the following information below: B. Sales revenue - direct expenses = contributory income C. Contributory income + departmental revenue = departmental expenses A food division had beginning inventory of $48 000, purchases of $122 000 and ending D. Departmental expenses - departmental revenue = contributory income inventory of $32 000. 5. All of the following would be found in the balance sheet, EXCEPT 9. What is the cost of goods available for sale? A. current portion of mortgage A. $122 000 B. long-term liabilities B. $144 800 C. marketable securities C. $170 000 D. $190 000 D. interest received16. This ratio measures the effectiveness in management in generating profit on sales, assets Peter's Grill reported the following expenses (in millions of dollars) for a four-month period as and owner's equity. What does this statement refer to? follows: Month 1 $2M, Month 2 $3M, Month 3 $4.5M, and Month 4 $5M. A. liquidity 11. What is the dollar change in expenses from Month 2 to 3? B. asset management C. financial leverage A. $1M D. profitability R. $1 5M C. $ 3M 17. If a company chooses investment option A over option B, which of the following does D. $2M the forgone alternative refer to? 12. Determine the dollar change from Month 3 to 4. A. Opportunity cost B. Sunk cost A. $0.5M C. Frozen opportunity B. $1M D. Average cost C. $1.5M D. $2.5M 18. What is debt to equity ratio? 13. What is the total expenses for the four-month period? A. Total assets divided by total liabilities B. Total long-term assets divided by fixed assets A. $7.5M . Total liabilities divided by total stockholders' equity B. $10M D. Total stockholders' equity divided by total long-term liabilities C. $14.5M D. $18.2M 19. Which of the following is an objective of internal control? To: 14. What does the working capital ratio measure? The extent to which: A. eliminate collusion A. Fixed assets exceed current assets B. prevent employees from having access to cash B. Current assets exceed total assets C. provide 24-hour policing of employees C. Current assets exceed current liabilities D. safeguard the assets of a business D. Current liabilities exceed current assets 20. What is collusion? 15. Which of the following is another name for acid-test ratio? A. One waiter accidentally running into another A. Inventory ratio B. Two or more employees working together fraudulently B. Current ratio C. An employee supervising the work of another C. Quick ratio D. An employee being in charge of both records and assets D. Turnover ratio 21. Which of the following is an assumption under (Cost-Volume-Profit Analysis) CVP? A. Fixed costs will not remain fixed in the short-term B. All costs can be broken down into fixed and variable elements